Lawsuits

If successful, previously banned brokers might be free to "fleece your grandma" again, an expert warned.

Within days of a colleague's retirement and having been introduced as their new advisor, Corbin Hoffner left for Raymond James.

Lawyers allege the 92-year-old victim's daughter begged Schwab to freeze her mother's account, but to no avail.

Schwab vehemently denied allegations that it mishandled clients' uninvested cash, calling the putative class action just the latest in a series of "unsound, copycat lawsuits."

The legal action comes after executives expressed comfort with their firm's deposit rates in a recent earnings call.

The wealth management giants join their rivals Wells Fargo, Morgan Stanley, UBS, LPL Financial and Ameriprise in being accused of using uninvested cash in advisory accounts to boost their bottom lines rather than benefit clients.

UBS executives estimate their plan to raise rates on certain accounts will cost the firm $50 million. A new suit cites that as evidence that the firm "violated its obligations to its clients."

The decision hinging on the definition of "inventory" in the sale of a highly valuable position in a U.S. partnership resolved a saga that began 16 years ago.

Analysts say that firms that are forced to start paying clients higher rates may have to raise their advisory fees and cut costs to make up for the revenue losses.

The Federal Trade Commission says it's weighing a likely appeal of the ruling.